Cardano has over 30 parameters. Each parameter plays a role in shaping the network’s functionality, governance, economics, and performance. The min_pool_cost parameter was a point of consternation for many within the Cardano community for a long time. Here is what the parameter does, and why you might care.

What is it

The min_pool_cost sets a minimum fixed fee that every stake pool operator (SPO) must charge to run a pool.

Why a Minimum Cost?

Running a stake pool isn’t free. You need hardware (or cloud servers), electricity, and time to keep everything secure and up to date. The min_pool_cost sets a floor on how low a stake pool’s fixed fee can go. Without it, some pool operators might…